MINUTES

Board Briefing Session and Regular Meeting

August 5, 2002

 

In accordance with the terms and provisions of the Texas Open Meetings Act, Chapter 551 of Texas Government Code, the Board of Trustees of the Austin Community College District convened in public session at a Board Briefing on Monday, August 5, 2002, at 5:46 p.m. in Room 103.6 of the Highland Business Center of Austin Community College located at 5930 Middle Fiskville Road, Austin, Texas, with the following members present: Rafael Quintanilla, Chair/Presiding Officer [arrived at 5:55 p.m.]; Barbara Mink, Vice Chair; Allen H. Kaplan, Secretary; Beverly Watts Davis; Lillian J. Davis; John F. Hernandez, Nan McRaven; Beverly Silas; and John Worley

 

Topic:  Financial Statement for May 2002

Dr. Mink introduced the item and Ben Ferrell, Vice President, Business Services, distributed the June 2002 Financial Statement.  Mr. Ferrell presented a summary statement of budget/reserves; summary of income items; and summary of expenditures and transfers, and responded to questions from Trustees.

 

Recess

Mr. Quintanilla recessed the Board Briefing at 6:15 p.m.

 

Reconvene

In accordance with the terms and provisions of the Texas Open Meetings Act, Chapter 551 of Texas Government Code, the Board of Trustees of the Austin Community College District reconvened in public session at the Regular Meeting on Monday, August 5, 2002, at 6:26 p.m. the Board Room (201) of the Highland Business Center of Austin Community College located at 5930 Middle Fiskville Road, Austin, Texas, with the following members present: Rafael Quintanilla, Chair/Presiding Officer; Barbara Mink, Vice Chair; Allen H. Kaplan, Secretary; Beverly Watts Davis; Lillian J. Davis; John F. Hernandez, Nan McRaven; Beverly Silas; and John Worley

 

Recognitions

There were no recognitions.

 

Citizens Communication

·       Mark Goodrich, AFT/ACCCEA, spoke regarding compensation.

·      Richard Troxell, Universal Living Wage Campaign, distributed information and spoke regarding living wages.

·      Myra Bradley, ACC/AFT, spoke regarding the budget.

·      Judy Allen Green, ACC/ACCCEA, spoke regarding benefits, professional development day, classified breakfast; salaries; and Holiday party.

·      Margie Shelnutt, ACCCEA, spoke regarding once-a-month pay.

·      Lewis Washington, ACCCEA, spoke regarding pay once a month.

·       Chanell Bell, ACCEA, spoke regarding pay once a month.

 

Reports from Associations

·       Adjunct Faculty Association – Kitty Henderson, President, spoke regarding target compensation goals.

·       Classified Employees Association – Mark Goodrich, President, spoke regarding bi-weekly pay for classified employees.

·       Full-Time Faculty Senate – Laura Ore, President, spoke regarding cost savings and compensation.

·       Professional-Technical Employees Association – Karen Anderson spoke regarding professional development and announced FY 2003 officers for the Association:  Marilyn Lee-Taylor, President; John Kennie, President-Elect; and Gina Palacios-Grochow, Secretary-Treasurer.

·       Student Government Association – Zander Parker, President, spoke regarding the FY03 budget and course schedules.

 

Trustee Community Organization Reports to the Board B

·      Board Secretary Allen Kaplan reported on a meeting with the Elgin Chamber of Commerce on July 11, 2002.

·      Board Chair Rafael Quintanilla reported on a July 25, 2002, meeting with the El Concilio and Barrio Unido.

 

Reports to the Board

·      Report of Achievements and Recognitions – No report was presented.

·      Internal Auditor Report – Imad Mouchayleh, Internal Auditor, presented an update regarding payroll reconciliation and an Internal Audit report on Adult Basic Education. 

 

CONSENT AGENDA

 

Agenda Item 7566

Minutes of July 1, 2002, Regular Meeting; July 8, 2002, Board Budget Work Session; July 18, 2002, Board Budget Work Session; and July 22, 2002, Monthly Work Session of the Board of Trustees

Recommendation:  That the minutes be approved as presented.

 

Agenda Item 7567

Resolution to Amend Authorized Representatives for the TexPool Accounts

Recommendation:  That the Board of Trustees approve a resolution to authorize Ben Ferrell, Vice President for Business Services; Leslie Sabin, Controller, Business Services; and Cheryl Coe, Accounting Manager, as representatives to transmit funds for investment in TexPool, withdraw funds from time to time, to issue letters of instruction, and to take all other actions deemed necessary or appropriate for the investment of local funds.

 

Trustee Nan McRaven moved and Beverly Silas seconded that:

MOTION:  The Board of Trustees approve the Consent Agenda as recommended.

VOTE:  The motion passed on a vote of 8-0.

FOR:  Beverly Watts Davis, Lillian J. Davis, John F. Hernandez, Allen H. Kaplan, Nan McRaven, Barbara P. Mink, Beverly S. Silas, and John B. Worley.

AGAINST:  None.

The Chair did not vote.

 

Agenda Item 7568

Proposed Approval of Tax Rate and Scheduling of a Public Hearing on September 9, 2002

Mr. Quintanilla introduced the item.

Lillian J. Davis moved and Beverly S. Silas seconded that:

MOTION:  The Board of Trustees propose a five cent tax rate and record a vote.

VOTE:  The motion passed on a vote of 8-0.

FOR:  Beverly Watts Davis, Lillian J. Davis, John F. Hernandez, Allen H. Kaplan, Nan McRaven, Barbara P. Mink, Beverly S. Silas, and John B. Worley.

AGAINST:  None.

The Chair did not vote.

 

Lillian J. Davis moved and Beverly S. Silas seconded that:

MOTION:  The Board of Trustees schedule a public hearing on the FY 2003 tax rate on September 9, 2002.

VOTE:  The motion passed on a vote of 8-0.

FOR:  Beverly Watts Davis, Lillian J. Davis, John F. Hernandez, Allen H. Kaplan, Nan McRaven, Barbara P. Mink, Beverly S. Silas, and John B. Worley.

AGAINST:  None.

The Chair did not vote.

 

Agenda Item 7569

Proposed Board Fiscal Year 03 Budget

Mr. Quintanilla introduced the item and Ben Ferrell provided supplemental information concerning the proposed budget, including a change on page 68 to move the amount of money down one line for each vendor on the listing of vendors projected to be paid $25,000-$100,000 for FY03.  Staff responded to questions from Trustees regarding the budget. 

 

Lillian Davis moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees approve the Fiscal Year 2003 Budget as presented by staff.

 

John requested a Substitute Motion and Beverly Watts Davis seconded:

SUBSTITUTE MOTION:  Compensation to the employee groups would be distributed or allocated in the following manner:  The total amount of money available for compensation under Board Policy F-10 which according to page 92 is $1,995,224--which does not count the professional development and stipends—that total amount of money would be divided by the total number of full-time equivalent employees which includes 517 adjuncts.  That number which would be the pay increase, per capita per employee, would then be multiplied by the number of full-time employees in each group which is approximately 405 for full-time faculty; 517 for adjuncts; he did not know the number for Adult Basic Education because it could not be found in the budget book, but whatever it is that would be divided by that number—there are three full-time teachers but there has to be some adjuncts because 3 into $250,000 would be more than $80,000 and he felt sure they were not paid that much; 38 administrative employees, 265 professional-technical employees, and 463 classified employees—all according to the budget book.  That would determine the allocation per employee group.  Within each employee group, his proposal was that they get a 1% cost of living adjustment.  That would go for every group except administrators. They would get approximately .5%.  All of the money allocated then would go to a cost-of-living which would be approximately .5%.  The remainder within full-time would be market adjustments; the remainder within adjunct faculty would be market adjustments, to include the $175,000 for outside education experience; and the remainder within professional-technical would be $37,000 for market adjustments; and then an adjustment to counteract the effects of raising the ACC minimum wage within the classified distribution, after the 1% cost-of-living, a proposed increase of $93,000 to increase the minimum wage for staffing table employees to $10.60 per hour, a $48,000 market adjustment in the remainder for an anti-compression adjustment to counteract any inequitable effects from raising the minimum wage to $10.60 per hour.

Allen Kaplan recused himself from vote on the Substitute Motion.

VOTE:  The motion failed on a vote of 1-5-2.

FOR:  John Worley

AGAINST:  Lillian Davis, John Hernandez, Nan McRaven, Barbara Mink, Beverly Silas

ABSTAINING:  Beverly Watts Davis and Allen Kaplan

The Chair did not vote.

 

Beverly Watts Davis moved and John Worley seconded that:

AMENDMENT TO MAIN MOTION:  The Downtown Education Center be cut from the FY03 Budget.

Beverly Watts Davis withdrew the Amendment to Main Motion and moved the following Amendment to Main Motion and Dr. John Worley agreed:

AMENDMENT TO MAIN MOTION:  The Downtown Education Center will be reviewed in November 2002 and the Board will make a decision at that time regarding continuation of the Downtown Center.

Lillian Davis accepted the Amendment to the Main Motion.

 

The agenda was re-ordered to consider action regarding Agenda Items Agenda Items 7570 and 7571 as a part of the FY2003 Budget.

 

Agenda Item 7570

Proposed Amendments to Board Policy A-4, Tuition Rates

John Worley moved and Allen Kaplan seconded:

MOTION:  That the Board of Trustees approve a $3 per credit hour increase in out-of-district tuition to be implemented in January 2003 and that [2] of the policy be amended to read:  “In order to maintain a tuition differential that is fair both to ACC taxpayers and to Texas-resident ACC students who live outside the taxing district, the credit-hour differential for such students shall reflect the local tax effort in support of in-district students.  It shall thus be the ratio of annual property-tax revenues to annual in-district credit hours, except that any year-to-year term-to-term increase in the differential shall be no more that $3 per credit-hour.  The President is authorized and encouraged to use any available method to lessen the impact of this tuition differential on economically-disadvantaged students.”

Nan McRaven requested a Friendly Amendment to the Motion:

FRIENDLY AMENDMENT TO THE MOTION:  That the Board of Trustees approve a  $1 per credit hour increase in out-of-district tuition to be implemented in January 2003.

Dr. Worley did not accept the Friendly Amendment.

VOTE:  The motion passed on a vote of 6-1-1.

FOR:  Beverly Watts Davis, John F. Hernandez, Allen H. Kaplan, Nan McRaven, Beverly S. Silas, and John Worley.

AGAINST:  Lillian J. Davis

ABSTAINING:  Barbara P. Mink

The Chair did not vote.

*****

A-4. TUITION RATES

            [1] The tuition rates for in-district college-credit students shall be set by the Board. Except when the Board explicitly directs otherwise, tuition rates for other students shall be set by the President in accordance with this policy. To the extent feasible, general charges shall be assessed as tuition.

            [2] In order to maintain a tuition differential that is fair both to ACC taxpayers and to Texas-resident ACC students who live outside the taxing district, the credit-hour differential for such students shall reflect the local tax effort in support of in-district students. It shall thus be the ratio of annual property-tax revenues to annual in-district credit hours, except that any year-to-year increase in the differential shall be no more than $3 per credit-hour. The President is authorized and encouraged to use any available method to lessen the impact of this tuition differential on economically-disadvantaged students.

            [3] The further per-credit-hour differential in tuition rates for students who do not qualify as Texas residents shall be no less than the ratio of all revenues from state government to total credit hours by in-state students.

            [4] The President may adopt rules waiving all or part of the tuition and/or other charges for senior citizens or students enrolled under a joint-credit agreement with a school district, with an annual report to the Board on the nature and extent of such waivers.

            [5] The President shall set charges for non-credit and continuing-education classes that at least cover operational, indirect, and overhead costs, except where specific below-cost sectors have been approved by Board vote.

*****

 

Agenda Item 7571

Proposed Amendment to Board Policy G-5, Capital Equipment Projects

Mr. Quintanilla introduced the item and Trustees discussed the proposed amendment.

Lillian Davis moved and Nan McRaven seconded that:

MOTION:  The Board of Trustees approve the revision to Board Policy G-5, Capital Equipment Projects, to add:  “In those years, in which the increase in annual revenue for the Education and General fund is projected to be below 4%, the annual transfer may be less than 4%.”

VOTE:  The motion passed on a vote of 8-0.

FOR:  Beverly Watts Davis, Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, Beverly Silas, and John Worley.

AGAINST:  None.

The Chair did not vote.

*****

G-5. CAPITAL EQUIPMENT PROJECTS

            Each annual budget shall transfer not less than 4% or more than 6% of projected annual revenues to a fund from which Education and General Fund capital expenditures are made. The full amount budgeted each year shall be based on the projected multi-year average budget for capital expenditures.  In those years in which the increase in annual revenue for the Education and General fund is projected to be below 4%, the annual transfer may be less than 4%.

*****

 

Continuation of Agenda Item 7569

Proposed Board Fiscal Year 03 Budget

VOTE ON MAIN MOTION AS AMENDED:  That the Board of Trustees approve the FY 2003 Budget, as presented by staff, including:  amendment to Board Policy G-5, Capital Equipment Projects, to add:  “In those years, in which the increase in annual revenue for the Education and General fund is projected to be below 4%, the annual transfer may be less than 4%”; a final review of the Downtown Education Center in November 2002; revision of the revenue projection to include a $3 out-of-district increase to tuition beginning with the Spring Semester of 2003; and amendment to Policy A-4, Tuition Rates, to modify the language to “year-to-year”.

VOTE:  The motion passed on a vote of 7-1. 

FOR:  Beverly Watts Davis, Lillian Davis, John Hernandez, Allen Kaplan, Nan McRaven, Barbara Mink, and Beverly Silas.

AGAINST:  John Worley

Mr. Kaplan abstained from vote regarding page 138 of the budget concerning ACC Recommendations:  Professional/Technical.

The Chair did not vote.

 

Trustees expressed appreciation to staff for the outstanding work, reports, and discussion concerning the Fiscal Year 2003 Budget and for the work of the Budget Committee. 

 

Agenda Item 7572

Proposed Amendments to Board Policy F-10, Employee Compensation

Mr. Quintanilla introduced the item and Dr. Fonte stated the administration did not propose a change in F-10.  Dr. Worley requested that this item be postponed for discussion at a later date.

 

Executive Session

There was no Executive Session.

 

President’s Administrative Report

Dr. Fonte commended the Board for good discussion of the budget and the time taken on these matters.  He also expressed appreciation for the work of the Budget Committee and staff.  He stated that even though revenues did not make this an ideal budget in meeting the needs of the community, he was committed to executing the budget as passed.

 

Meeting Review

Trustees commented regarding the meeting: 

What we did well rated as 1-5 (with 5 being very satisfied): 3; 4; 5; 3.75—good meeting; 5; abstain; 4; 5.

What we can do better:  There were no comments.

 

Adjournment

Having no motion before the Board, the August 5, 2002, Regular Meeting of the Austin Community College Board of Trustees was adjourned at 10:05 p.m.

 

Approved By      

Allen H. Kaplan, Secretary